BSE SME – Getting closer to hit 2nd century

Mumbai, Apr 3 (KNN) The SME exchange of Bombay Stock Exchange (BSE) is getting closer to get on board 200 companies. Today one more company got listed with the platform taking the total count to 176.

The equity shares of Mumbai based Octaware Technologies Limited got listed with the exchange today.

It’s close to five years that a separate segment for listing of SMEs has been introduced. Recently, the market participants voiced for ways to increase the liquidity to attract more institutional and retail investors.

According to a media report, market participants were lobbying hard with the capital market regulator to review the trading norms to increase liquidity in the segment. One of the main issues being proposed is lowering the trading lot size post listing, which is currently pegged at Rs 1 lakh.

Meanwhile, for listing on the BSE SME Exchange the company should have net tangible assets of at least Rs 3 crore in the latest audited financial results. The net worth of the company should be at least Rs 3 crore as per the latest audited financial results.

The minimum application and trading lot size shall not be less than Rs 1,00,000. Also, the merchant bankers shall underwrite 15 per cent in their own account and the issue shall be 100 per cent underwritten.

To migrate to the main board BSE, the SME exchange companies have to ensure that their paid-up capital exceeds Rs 10 crore but below Rs 25 crore. In cases where the post issue paid-up capital is likely to exceed Rs 25 crore, the SME exchange companies shall migrate to the main board. In this case, approval of the non-promoter shareholders is required with at least two-third majority. The companies should have the approval of their shareholders and the company should assess the eligibility criteria for listing on the main board.